Applied artificial intelligence company Baba secured $40 million in series A funding to modernize the Medicare and Medicaid experience.

FirstMark Capital led the funding round, with participation from CVS Health Ventures and Valtruis. Returning investors General Catalyst, Genius Ventures and Ground Up Ventures also backed the round.

“Baba is our latest bet on the consumerization of healthcare, this time for the millions of Americans who are rural, older and have more complex needs,” said Rick Heitzmann, FirstMark Capital co-founder and partner, in a statement. “They’ve proven that AI can finally bring Medicare patients and families the coordinated, concierge-level care they’ve always deserved.”

Founded in 2025, Baba is a care platform that connects Medicare and Medicaid patients to dedicated care teams, including care coordinators and licensed therapists. It has partnered with national health plans, government agencies and more—supporting more than 10,000 patients with 100,000 families on its waiting list, executives say.

The U.S. Centers for Medicare and Medicaid Services also selected Baba for the 10-year ACCESS model.

The AI company plans to use the funding to further its research, reach more health plans and accelerate value-based arrangements.

Baba CEO and founder Connor Sweeney told Fierce Healthcare the fresh capital allows the company to “scale how care is delivered and coordinated for people on government-sponsored coverage.”

“Our biggest focus is deepening our work with payers on value-based arrangements, and continuing to build toward a model where we take on risk,” Sweeney said.

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